The Government have today taken up the powers of the 2002 Enterprise act to order an investigation into BSkyB's purchase of a 17.6% stake in ITV (here).
This is despite the fact that the OFT already have an investigation going on into the purchase. So now taxpayer's are paying for 2 separate investigations into the ownership of BSkyB.
No doubt Alistair Darling is hoping to make a Government 'stand' against Rupert Murdoch; just a few months before Gordon Brown assumes the Premiership and Darling himself becomes Chancellor. This stand against evil Rupert will no doubt go down well with the Labour Troops.
However, under the recent Communications act the Government cravenly allowed companies to buy into terrestrial channels. This was to allow Murdoch to buy into Channel 5 - indeed it was christened the Murdoch Clause. Now that Murdoch Junior has abused this the Government are able to feign injury.
Not riled enough is my bet for anything to happen. Everything BSKYB have done is legal and Virgin Media are just bitter. So this is all about grandstanding and points scoring; but don't worry, it is only taxpayers who have to foot the bill.
Let's hope he doesn't try and buy out 18 Doughty Street.
ReplyDeletenothing to stop him do ing that...
ReplyDeleteHowever, under the recent Communications act ...Government are able to feign injury.
ReplyDeleteThats the crucial bit . Interesting post CU, a good point.
Grand standing and points scoring is what that wanker Branson does best...everything he owns a controlling interest in loses money hand over fist.
ReplyDeleteBetter Murdoch than the tax avoiding tosser Branson..at least with Murdoch you know you're being shafted.
Won't the OFT and OFCOM investigations have different remits though?
ReplyDeleteShot - Hmm,branson is a man of many charms, but his recent businesss ventures are a lot more successful than his 90's ones.
ReplyDeleteBillionaire's are never in the habit of paying tax and BSKYB really takes the mick here.
SL- A fair point well made, but they are actually quite similar, both looking into generally whether it is right to allow this level of media cross-ownership. But why would you have 2 investigations in the real world - is this how the police do it? I think not.
This post is being discussed on 18DS in complimentary terms.
ReplyDeletethanks PT - wish I had the time to watch, have not been able to 18Ds for a little while now....
ReplyDeleteis it ona show that will be repeated?
I read elsewhere that Sky and Virgin were as bad as each othr. Whom to believe?
ReplyDeleteVery interesting post, c/u. What dastardly creatures these execs are!
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